Switzerland: Employment and Labour Law

This country-specific Q&A provides an overview of Employment and Labour laws and regulations applicable in Switzerland.

  1. Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?

  2. What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned? How many employees need to be affected for the additional considerations to apply?

  3. What, if any, additional considerations apply if a worker’s employment is terminated in the context of a business sale?

  4. What, if any, is the minimum notice period to terminate employment? Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?

  5. Is it possible to pay monies out to a worker to end the employment relationship instead of giving notice?

  6. Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during his notice period but require him to stay at home and not participate in any work?

  7. Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures.

  8. If the employer does not follow any prescribed procedure as described in response to question 7, what are the consequences for the employer?

  9. How, if at all, are collective agreements relevant to the termination of employment?

  10. Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?

  11. What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?

  12. What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?

  13. Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?

  14. Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?

  15. In the event of financial difficulties, can an employer lawfully terminate an employee’s contract of employment and offer re-engagement on new less favourable terms?

  16. What, if any, risks are associated with the use of artificial intelligence in an employer’s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer’s use of AI or automated decision-making in the termination process?

  17. What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?

  18. Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented? Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.

  19. Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.

  20. Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?

  21. Are employers obliged to provide references to new employers if these are requested? If so, what information must the reference include?

  22. What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?

  23. Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?